Expedia Shares Are Rising Thursday: What's Going On?

Shares of Expedia Group Inc. EXPE are trading higher on Thursday, following reports that Uber Technologies Inc. UBER is considering a potential acquisition of the travel booking company.

What To Know: According to the Financial Times, Uber has engaged with advisors in recent months about exploring a potential bid for Expedia after a third party suggested the idea. The discussions, still in their early stages, have focused on Uber CEO Dara Khosrowshahi, who joined the company in 2017. Before that, he served as Expedia's CEO for 12 years, expanding the company's presence to over 60 countries. Khosrowshahi remains a non-voting member of Expedia's board and would likely recuse himself if formal talks begin.

Although no formal approach has been made to Expedia and there are no current discussions, sources cautioned that Uber's interest was at a very early stage and it was possible that a deal would not transpire. In August, Uber's Chief Financial Officer Prashanth Mahendra-Rajah stated that the company's "top priority" for deploying capital was investing in growth, including via acquisitions.

What Else: Expedia, with a market cap nearing $20 billion, would complement Uber's existing growth strategy, which includes its core ride-hailing services as well as expansions into food delivery, corporate freight, and travel bookings. Uber, which posted its first annual profit in February 2024 since its 2019 IPO, has not made a major acquisition since 2021 but continues to invest in autonomous driving technologies.

Uber's previous acquisitions include Postmates, Drizly, Careem, and Transplace, while it has also partnered with self-driving firms such as Aurora, Waymo, and BYD and invested in British startup Wayve in August 2024. Moreover, Expedia's stock rose by 6% in pre-market trading, building on an almost 50% increase over the past year. Meanwhile, Uber’s shares declined by 3%, though the company has seen 84% growth in the last 12 months.

EXPE Price Action: Expedia shares were up by 5.14% at $158.44 at the time of writing, according to Benzinga Pro.

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